Journal Entry

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CA Shammi Prabhakar

CA Shammi Prabhakar (Querist)
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25 June 2010 Hi Friends,

What is the journal entry for Preliminary expenses when it's being incurred ??

Arun Iyer

Arun Iyer (Expert)
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25 June 2010 hai

Preliminay Exp. -----------Dr.
To Cash/Bank

thanks

k a k

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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25 June 2010 Preliminay Exp. -----------Dr.
To Cash/Bank

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CA Shammi Prabhakar

CA Shammi Prabhakar (Querist)
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25 June 2010 It's a ques. asked in an interview,

Ihave told the same ans. to them..
but he told that ans. is wrong...

so can you please let me know if other entry is possible for preliminary expenses....

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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25 June 2010 Preliminery expenses is a pre-incorporation expenses. Hence the expenses is incurred by the director/member on behalf of the company for incorporation.

Hence, you should pass the entry as follows.

Preliminery Exp A/c. Dr

To Director's/member a/c.

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